JMJ North Coast Capital

08/17/2022

Some interesting data here. Investors, hold tight, relief is coming...

The housing market is resetting in a "buyer-friendly direction." Here's what that means and how home sellers are fighting back.

07/21/2022

"No-strings-attached payments encourage better financial decisions said the studies..."

Researchers gave cash to low-income people. It led them to spend more and work less.

07/13/2022

Do we always have to "Level Up"? I don't think so. Figure out what really matters to you, what YOUR dreams and goals are, NOT someone else's. Gurus and coaches have to sell education and trainings and masterminds and keep your attention because that's their business. But they are often projecting onto you. Same with your peers, associates, fellow real estate investors, business competitors, etc.

One of the things I've learned in the last couple years is that I'm ok with not being in the front of the pack. I'm ok with not being the best. Yep, I just said that. I love what I do, and I love HOW I CHOOSE to do it! That means a normal work "day" which includes time for daily mass and meditation (as often as I can), cooking and meals with family, going to the playground with my kids, driving around in our golf cart, chores around the house, etc. The point is that I don't feel guilty for doing that and not putting in more time and effort in my business.

Be confident in who you are and what you do, and stop trying to keep up with everyone else!

Superlatives abound in the world of real estate investing. Articles, podcasts, and other media boast headlines like ”10x Your Business” and ”1,000 Doors in Only 2 Years.” The private money industry isn’t immune to peacocking either. Introductions boasting of how much in assets one has unde...

07/11/2022

There is opportunity here. This hike should really push us into the correction we've been waiting for on property prices. Don't let the rates deter you from making more aggressive offers. Stay principled and underwrite conservatively but by all means stay out there and look for opportunities!

The latest Federal Reserve minutes show another 75 basis point rate hike could be on the way in July as the Fed combats decades-high inflation.

06/28/2022

What Should I Do?

Most of us are asking that question right now. Markets are in turmoil as interest rates have risen faster in the last few months than they have in decades. Add to that the reality that we are already in a recession (and don’t know yet how bad it might get), food shortages, material shortages, war in Europe, and political instability, and it can feel like the wild wild west.

We are real estate investors. We aren’t ruled by emotion. We base our decisions on fundamentals. But what are those fundamentals in a time like now? Sound investing takes available information and makes decisions based on that. We can’t predict the future, but we can prepare for it.

What worked over the last decade and may have produced incredible results now needs to be reevaluated. We got good in our investing niches and the temptation is to ignore the signs and keep doing what we’ve been doing. But let’s be honest, it wasn’t been hard to be successful in this past market. Properties were plentiful, prices were good, rates were at historic lows, and anyone with a pulse could profit.

So it’s time to return to fundamentals. This is what will separate us from the casual investor. What are some of these fundamentals?

Be disciplined. You can’t afford to pay more to outbid other buyers and hope that you’ll make up for it on the appreciation. In fact, I would counsel to start adjusting your ARV DOWN by 10% or more to account for a market correction. Depending on your market, that could be even more. But know your market and look at market data and historical data!

Think about different asset classes or strategies. Look at niches within popular asset classes. Get ahead of everyone else and think about changing lifestyles and desirable areas of the country. All of this data is readily available. Analyze it and act on it.

Think about investing in assets other than real estate. What assets are proven to hold value in a recessionary market? Commodities for instance.

Keep your powder dry. Now is the time to get liquid and sit on some cash. When prices correct, you will want to have it available so you can jump on opportunities. We are probably at the top of the market for years to come, so maybe sell a property now.
Whatever you do, don’t panic. We act, not react.

If you would like to discuss strategy, you know that I love to have those conversations. Give me a call and let’s profit in these crazy times!